Judge orders collection agencies to halt action

LVNV Funding and Resurgent Capital Services under scrutiny

A judge has ordered two companies to stop action on nearly 4,000 debt collection cases in Maryland, according to a statement Wednesday by the Maryland Judiciary.

The companies, LVNV Funding and Resurgent Capital Services, cannot pursue the collection of consumer debts they acquired until further notice, said District Court of Maryland Chief Judge Ben C. Clyburn.

Last week, the state Department of Labor, Licensing and Regulation said it "found grounds to allege" that both companies violated several debt-collection laws. The regulatory agency on Friday suspended the debt-collection licenses of the two companies and ordered them to stop attempting to collect on consumer debts.

All of the cases affected by Wednesday's ruling will be updated in the state's Judiciary Case Search. Maryland residents seeking more information should contact the local District Court location where their collection case was filed.